As a result of the failed Galaxy Note 7, the IT and Mobile division’s profit collapsed nearly entirely, hitting just ₩100 billion ($88 million). By comparison, during the third quarter of 2015, that division’s profit was ₩2.40 trillion, or $2.1 billion. That dip in the mobile division was the worst performance in the six years since the Samsung Galaxy first debuted.

Further Reading

“Regarding the mobile business, the company will focus on expanding sales of new flagship products with differentiated design and innovative features, as well as regaining consumers’ confidence,” the company wrote in a statement. “Samsung will concentrate on strengthening its competitiveness by continuously enhancing solution capabilities such as KNOX, Samsung Pay and cloud-related and artificial intelligence-related services.”

"However, smartphone shipments remained solid due to continued stable sales of its existing flagship devices, including the Galaxy S7 and S7 edge, and steady growth in the mid-tier Galaxy A and J series," Samsung added. "Looking ahead to the fourth quarter, smartphone and tablet demand is forecast to increase during the year-end peak season."

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Cyrus Farivar
Cyrus is a Senior Tech Policy Reporter at Ars Technica, and is also a radio producer and author. His latest book, Habeas Data, about the legal cases over the last 50 years that have had an outsized impact on surveillance and privacy law in America, is out now from Melville House. He is based in Oakland, California. Emailcyrus.farivar@arstechnica.com//Twitter@cfarivar